VA Buyer Guide | San Diego BAH | PCS Move | Murrieta, CA

Hi Jessica Genung here, Today’s video is all about the benefits to using your VA loan.  I’m going to tell you about it and we are starting right now.

We have been wanting to do a video covering the VA loan details for quite a while now.  Don’t worry, you don’t have to remember all the points that I cover because I have a VA Buyer’s Guide that you can download, the link is below in the description.  I am basically just covering the info in the Buyer Guide in this video. So check out the link to that guide, it is available for immediate download.

We have seen an uptick in buyers using their VA loan benefit recently.  We have a lot of active military and retired military residents in the Murrieta/Temecula area. We are within commuting distance to several military bases such as Camp Pendleton, March Air Reserves Base, and the Naval Base which is in San Diego.  So lets’s get to it. What makes you eligible for a VA loan? Here are 4 ways you may be eligible:

1. You served 90 consecutive days of active service during wartime.
2. You served 181 consecutive days of active service during peacetime.
3. You served 6 years of service in the National Guard.
4. You served more than 6 years of service in the reserves.

So what are the benefits to a VA loan?

1. No Downpayment is required 0% down
2. There is no Mortgage Insurance unlike most other low down payment options such as FHA loans. For example, if you get an FHA loan which is a popular option for folks that don’t have much of a down payment but that don’t have access to the VA loan and you buy a $400,000 home, your mortgage insurance is going to run you about $300 a month.  It can really add up.
3. Low interest rate and lenient credit requirements.

So you can buy a house with 0% down? Not exactly…  You still have closing costs which are typically about 2-3% of the purchase price.  Talk about that. You will also need money for earnest money, your deposit, the appraisal and money for inspections.

So now that we’ve talked about all the great reasons to use your VA loan benefit I will briefly discuss a few of the downsides.  We make these videos so you can be fully informed about the home buying process and to educate you on the realities of today’s local housing market.  With a home purchase being a huge decision, we want to make sure you are away of the full picture. 

Regarding our current market, it is slowing, which is good news for VA buyers actually.  From a seller’s perspective, a VA loan is often less desirable than other types of financing. Some sellers and agents think they can find better-qualified borrowers than those with VA loans. Others are happy to help veterans but worry that the VA loan process will be filled with delays and red tape because we are dealing with a government program after all. 

Sometimes a seller is concerned about the extra paperwork or slow-moving bureaucracy. Other times it’s an agent’s warnings about the VA appraisal process or closing costs. I have not had an issue lately with VA appraisers being backlogged, but that does happen sometimes. Only certain approved appraisers are qualified to do VA appraisals, and when they get busy, there can be delays. 

Regarding closing costs, VA offers are often asking for more help with closing costs than conventional loans. In a strong seller’s market, sellers do not want to pay buyer closing costs. But the good news is our market may be shifting more towards buyers. We are in the thick of the corona virus pandemic and currently advised to stay at home and social distance. Also, folks are getting laid off and losing their jobs which is lowering the amount of buyers currently in the market. 

Military folks as well as most government jobs are known as being quite secure, so now I think the tide may be turning and sellers would feel good about accepting a VA offer because they don’t have concerns that the buyer might get laid off before the home purchase closes escrow. 

Do all homes qualify? No

1. The VA does not allow veterans to buy fixer uppers. The home has to be safe, clean, secure, and free from termites. 
2. The VA also does not allow you buy investment properties. You must owner occupy the home. 
3. Regarding condo and townhomes, only complexes approved by the VA are eligible. And actually around town here, there are quite a few that are not currently eligible.  Your lender can look up in the system if a particular community you are interested in is currently VA approved. 

This is just a basic overview of the VA loan.  When considering using your VA benefit to purchase a home, it is extremely important you work with a lender that is experienced with the VA loan process. 

Lastly, I just want to say a quick thank you to all you Vets out there, we are so grateful for the sacrifice that you and your family have made to serve this great country. Thank you again, I am here for you if you have any questions about the VA loan process or about moving to our area.  We’d love to hear from you. Till next time, Bye!